---

EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) (“Capital Power” or the “Company”) announced today that it has entered into an agreement with a syndicate of underwriters led by TD Securities Inc. and CIBC Capital Markets (collectively the “Underwriters”), pursuant to which the Underwriters have agreed to purchase on a bought deal basis, an aggregate of 6,505,000 common shares of Capital Power, at an offering price of $38.45 per common share (the “Offering Price”) for total gross proceeds to the Company of approximately $250 million (the “Offering”). The Company intends to use the net proceeds from the Offering to fund growth initiatives, including its development pipeline that currently has 985 megawatts (MW) in advanced stages of development and for general corporate purposes.

The Underwriters have also been granted an option (the “Over-Allotment Option”) to purchase up to an additional 975,750 common shares at the Offering Price to cover over-allotments, if any. The Over-Allotment Option is exercisable in whole or in part, at any time for a period of 30 days following the closing of the Offering. If the Over-Allotment Option is exercised in full, total gross proceeds to the Company from the Offering will be approximately $288 million.

The common shares will be offered in all provinces and territories of Canada by way of a prospectus supplement (the “Prospectus Supplement”) to Capital Power’s base shelf prospectus dated May 15, 2020. The Prospectus Supplement will be filed with the securities commissions or securities regulatory authorities in all the provinces and territories of Canada on or before May 27, 2021. The common shares will also be offered on a private placement basis to “qualified institutional buyers” pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the “US Securities Act”).

Completion of the Offering is subject to customary conditions, including requirements of the TSX. Closing of the Offering is anticipated to occur on June 2, 2021.

All references to dollar amounts contained herein are to Canadian dollars.

No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Capital Power in the United States or in any jurisdiction in which such offer, solicitation of sale would be unlawful. These securities have not been and will not be registered under the U.S. Securities Act or any U.S. state securities laws and may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom.

Forward-looking Information

Forward-looking information or statements included in this press release are provided to inform the Company’s shareholders and potential investors about management’s assessment of Capital Power’s future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this press release is generally identified by words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes. This press release includes forward-looking information and statements pertaining to the expected amount and intended use of proceeds of the Offering, the filing of the Prospectus Supplement, any exercise of the Over-Allotment Option and the expected closing date of the Offering.

Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the specified approval date. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

About Capital Power

Capital Power is a growth-oriented North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta. We build, own and operate high-quality, utility-scale generation facilities that include renewables and thermal. We have also made significant investments in carbon capture and utilization to reduce carbon impacts and are committed to be off coal in 2023. Capital Power owns over 6,400 MW of power generation capacity at 26 facilities across North America. Projects in advanced development include 425 MW of owned renewable generation capacity in North Carolina and Alberta and 560 MW of incremental natural gas combined cycle capacity, from the repowering of Genesee 1 and 2 in Alberta.